There are excellent tenants out there, but in order to attract them a landlord needs to frequently consider updating their San Francisco property. Making some kind of improvement to the unit every time it becomes vacant is a good strategy if you can’t do a complete rehab the first time a unit vacates. San Francisco is a great location for investing in multifamily residential real estate but a lot of it is old and in need of updating. You can add value to your property if you fix it up between tenants and rent it for a much higher rent.
Demand for apartments in San Francisco is high but the most desirable tenants can be picky about what they rent. Tenants are often young, educated and well paid and they want a nice place to live. Even those who want to live in some of our edgy areas want nice amenities inside their apartment.
As an owner your end goal is to find the best tenant who will pay the highest rent and stay in your unit for a few years before moving on. When you have a vacant unit you can again raise the rent to market rent. It is the perfect time to make any necessary improvements or upgrades to your property.
By doing so, you create a greater demand for your rental property and therefore can charge a higher rent. If you don’t fix up your unit you will get less rent – and you may be stuck with that rent for a long time (as long as the tenant stays, except for a small % increase each year). In San Francisco it pays to make improvements sooner rather than later.
The tenants you are trying to attract tend to be picky when choosing a rental unit and according to Gordon Property Management in San Francisco, they should be. Tenants that have money, good jobs and a good education want a nice place to live. These prospective tenants want a clean rental property with fresh paint, nice appliances, and attractive light fixtures. They prefer wood floors over carpet. Consider replacing carpet with wood laminate flooring (this type of flooring can be 2-3 times the cost of carpet, but it will last longer and dramatically improve your unit). If there’s carpet it needs to be new or almost new. Nothing will turn off a prospective faster than stained carpet.
Purchasing something as simple as new knobs for all your cabinets is another fantastic addition an owner can make to a rental unit without spending too much. Old cabinets that reek of the 70s and 80s will often deter a great tenant, so if you can’t replace them think about painting them and changing out the knobs and hinges. Add a new granite counter top and you have transformed your kitchen. If you really want to improve your unit, upgrade the bathrooms and the kitchen. Although this is costly, a great bathroom and kitchen can often times be the thing that lands a tenant.
According to Gordon Management Property, tenants are increasingly looking for units that have a washer/dryer inside the unit. Having all the amenities tenants are looking for can be the best way to make your San Francisco property stand out.
By following these easy tips any landlord in San Francisco can land an excellent tenant that will not only increase their income, but treat their rental unit with care.
Great write-up Stephanie. Here is an article I’ve recently put together on vacancy rate vs. profitability here in Sarasota, FL: https://blog.sarasotamanagement.com/vacancy-rate-affect-profitability-sarasota-landlord/
Having nice amenities in your rental property, we agree, can ensure you quickly find discerning tenants which are the best kind of tenants to have. Here at Walters Home Management, we believe in curb appeal, curb appeal, and curb appeal. Invest in making the landscape look sharp and your property will not be vacant for long. I’m providing a link to our blog which has additional tips regarding vacancies:
Hope you find the blog interesting and helpful.